- New Belgian circular issued on December 11, 2024, changes VAT refund rules for credit insurers and insured parties
- Circular 2024/C/80 follows the EU Court ruling in the Euler Hermes case on February 9, 2023
- The circular specifies that VAT cannot be recovered in cases of total or partial loss of receivables covered by credit insurance contracts
- Previously, under certain conditions, credit insurers could recover VAT on irrecoverable receivables and insured parties could reclaim VAT on reimbursed amounts
- Starting January 1, 2025, these VAT recovery options will be abolished
- The changes mean credit insurers cannot recover VAT on paid claims and insured parties cannot reclaim VAT on reimbursed portions
- These adjustments will likely impact the financial operations and pricing strategies of credit insurers and necessitate changes in VAT refund procedures for insured parties
- Affected parties are advised to revise contracts, adjust pricing, and update administrative processes to comply with the new rules
Source: vat-consult.be
Click on the logo to visit the website
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
